Which Indian State Earns the Most from Road Tax? | SpotGenie Facts

Explore which Indian state generates the highest road tax revenue. Backed by Ministry of Transport data and expert insights. A SpotGenie daily fact series on roads, taxes, and transport trivia.

Which Indian State Earns the Most from Road Tax?
Which Indian State Earns the Most from Road Tax?

In India, road tax is a critical source of revenue for state governments. Whether you're registering a two-wheeler in Bengaluru or a commercial truck in Delhi, the road tax you pay fuels infrastructure development and maintenance. But here's the question: Which Indian state collects the most road tax?

๐Ÿ“„ The Answer: Maharashtra

According to official Ministry of Road Transport and Highways (MoRTH) data for FY 2022โ€“2023, Maharashtra tops the list of states with the highest road tax revenue, crossing โ‚น9,300 crore in collections.

๐ŸŒŽ Top 5 States by Road Tax Collection:

  1. Maharashtra โ€“ โ‚น9,300+ crore
  2. Tamil Nadu โ€“ โ‚น7,800 crore
  3. Uttar Pradesh โ€“ โ‚น7,100 crore
  4. Karnataka โ€“ โ‚น6,500 crore
  5. Gujarat โ€“ โ‚น5,400 crore

๐Ÿ“ˆ Why Maharashtra?

  • Mumbai and Pune have high vehicle density, especially of luxury cars and commercial fleets.
  • High registration charges and lifetime tax slabs bring in greater upfront revenue.
  • Massive volumes of freight vehicles and inter-state carriers cross through.
  • The state also sees major automotive sales, especially in urban zones.

๐ŸŒ Did You Know?

  • Maharashtraโ€™s road tax is calculated as a percentage of vehicle cost, often making it one of the most expensive states to register high-end vehicles.
  • States like Karnataka and Tamil Nadu follow close behind due to strong commercial and urban transport activity.
  • Several states (like Delhi, Kerala) offer partial or full tax exemption for EVs, affecting their total collections.

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